DIRECTV 2005 Annual Report Download - page 41

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THE DIRECTV GROUP, INC.
Corporation, is the Chairman of our Board of Directors, and Chase Carey, who is currently a director
of and was formerly employed by News Corporation, is our President and Chief Executive Officer and
a member of our Board of Directors. Additionally, two current News Corporation executives are
members of our Board of Directors. As a result, News Corporation has significant influence relating to
our management and actions that require stockholder approval. The interests of News Corporation may
differ from the interests of other holders of our common stock. The extent of New Corporation’s stock
ownership in us also may have the effect of discouraging offers to acquire control of us and may
preclude holders of our common stock from receiving any premium above market price for their shares
that may be offered in connection with any attempt to acquire control of us. The share repurchase
program announced February 7, 2006 will result in an increase in News Corporation’s ownership
interest in us.
We may face other risks described from time to time in periodic reports filed by us with the SEC.
We urge you to consider the above risk factors carefully in evaluating forward-looking statements
contained in this Annual Report. The forward-looking statements included in this Annual Report are
made only as of the date of this Annual Report and we undertake no obligation to publicly update
these forward-looking statements to reflect subsequent events or circumstances.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
As of December 31, 2005, we had approximately 27 locations operating in 15 states and 21 cities in
the United States and approximately 16 additional locations operating in 16 cities in seven countries
outside the United States. At such date, we owned approximately 1.0 million square feet of space and
leased an additional 1.3 million square feet of space. The major locations of the DIRECTV U.S.
segment include five administrative offices, two broadcast centers and three call centers. The major
locations of the DIRECTV Latin America segment include six administrative offices, five broadcast
centers and three call centers. We consider our properties adequate for our present needs.
ITEM 3. LEGAL PROCEEDINGS
(a) Material pending legal proceedings, other than ordinary routine litigation incidental to the
business, to which we became or were a party during the year ended December 31, 2005 or subsequent
thereto, but before the filing of this report, are summarized below:
Intellectual Property Litigation. On June 23, 2004, Acacia Media Technologies Corporation, or
Acacia, filed suit in the U.S. District Court for the Northern District of California against The
DIRECTV Group, Inc., Comcast Corporation, Cox Communications, Inc., Hospitality Network, Inc.,
Charter Communications, Inc., EchoStar Communications Corporation, Boulder Ridge Cable TV d/b/a
Starstream Communications, Seren Innovations, Inc. and Central Valley Cable TV, LLC, alleging
infringement of various patents and seeking unspecified damages and injunctive relief. The defendants,
including us, have answered by asserting that the patents are not infringed, not valid, and not
enforceable on numerous grounds and intend to vigorously defend against these claims. Activity is now
stayed pending outcome of requests by Acacia to combine the action with others as a multi-district
litigation.
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